FICCI-Wazir Advisors has released a knowledge report ‘Building a Roadmap for US$ 250 Billion Sustainable Textile Industry’ during the FICCI TAG 2022 Annual Textile Conference.
The report highlights the key global trends, market scenario and opportunities for India in the textile and apparel market. It further elaborates the key initiatives that India will need to achieve the target of US$ 250 billion by 2025-26 and build a sustainable industry going forward.
Global apparel consumption in 2021 is estimated to be around US$ 1.5 trillion and it is estimated to reach US$ 2 trillion by 2025. Global textile and apparel trade is around US$869 billion and expected to grow at 3.5% CAGR to reach US$ 1000 billion by 2025-26.
The report further states that the Indian textile and apparel market is estimated at US$ 153 billion in 2021, with domestic market constituting US$ 110 billion and exports contributing US$ 43 billion. The Indian textile and apparel market has the potential to reach US$ 250 billion by 2025-26.
The report highlights key global trends impacting the textile and apparel industry, which included high focus on sustainability and circular fashion, the ‘China+1’ strategy of global brands providing opportunity for countries like India to increase their export share, increasing the need for digitalization across the fashion supply chain and growing consumption of synthetic based textile and apparel.
The report suggests that to achieve the target of US$ 250 billion market and build a sustainable textile industry going forward, Indian Industry needs to focus on leveraging government support schemes like PLI, PM MITRA, Export incentives etc. to invest in new products, build scale of operations, and improve competitiveness. The industry should also align with global buyer needs of sustainability, value chain traceability and providing end to end services.
The report further suggests that industry should also focus on automation and digitalization to improve processes and efficiency levels; bring strong focus on people and skill development, start leveraging FTAs to tap new markets; develop capabilities and build capacities in synthetic textiles and technical textiles and adopt global best practices for manufacturing excellence. The government should bring additional support to the existing textile clusters which will help building capabilities and allow MSMEs to compete globally, highlights FICCI-Wazir Advisors report.
While delivering the inaugural address at FICCI TAG 2022, Ajit Chavan, Secretary and CEO, Textile Committee, Govt of India said that adopting good regulatory practices, sustainable chemistry, increased focus of quality and compliance issues, coupled with enhanced investments and continuous dialogue and engagement with the government are key mantras for achieving 250 billion USD target of Sustainable Textiles market in India by 2025-26.
He also suggested that state government’s Textile Policy should include parameters of Quality and Compliance beyond incentives.
Lubeina Shahpurwala, Member, FICCI and Co-Founder, Mustang Enterprises, said, “Innovation and efficiency will be the key pillars for Indian textile businesses to further enhance their footprint in global textile and apparel markets. Identify global best practices in the sector and encouraging adoption to improve efficiency and competitiveness.”
Anil Biyani, Executive Director, Damodar Industries, during a panel discussion suggested that the key to achieve the targeted number of 250 billion US$ is to stand on the pillar of Innovation combined with environment friendly productions.
Rahul Mehta, Chief Mentor, CMAI, said that India can achieve US$ 250 billion target easily by focusing on the Indian domestic textile and apparel industry and increasing the per capita consumption of consumer. He also stressed on the aspect of sustainability should be incorporated in the textile policy.
Prashant Agarwal, Co-founder of Wazir advisors said that the industry in confident of achieving US$ 250 billion target. The key is to focus of creating own brand positioning, focus on investments and training. It will lead to investment by big players and MSME, as both will co-exist.
Shalendra Vasudeva, CMO, Indo Rama Industries Ltd exhorted confidence in India meeting the challenges of building a concrete road map for the growth of textile Industry government has provided strong platform through various initiatives. Industry needs to look into integration of raw material strength, captive imagination for innovative products and ride on upcoming FTAs using our abundant resources and youthful manpower, he added.